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Document of The World Bank Public Disclosure Authorized Report No: ICR0000984 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-45690 TF-26661) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$150 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A HEBEI URBAN ENVIRONMENT PROJECT Public Disclosure Authorized December 23, 2008 Urban Development Sector Unit China Country Management Unit East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2008) Currency Unit = Yuan (Y) Y 1.00 = US$ 0.1459 US$ 1.00 = Y 6.8543 FISCAL YEAR ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy MIS Management Information System PDO Project Development Objectives MTR Mid-Term Review MTAPC Mid-Term Adjustment Project Components RVP Regional Vice-Presidency IPCAP Industrial Pollution Control Action Plan KPI Key Performance Indicators TTL Task Team Leader CPS Country Partnership Strategy IT Information Technology GIS Geographic Information System HP Hebei Province HPG Hebei Provincial Government HUEP Hebei Urban Environment Project IA Implementation Agency TWSC Tangshan Water Supply Company HWSC Handan Water Supply Company SWWC Shijiazhuang Wastewater Company TWWC Tangshan Wastewater Company HWWC Handan Wastewater Company WTP Water Treatment Plant WWTP Wastewater Treatment Plan ICB International Competitive Bidding RAP Resettlement Action Plan EMP Environmental Management Plan Vice President: James W. Adams Country Director: David R. Dollar Sector Manager: Ede Jorge Ijjasz-Vasquez Project Team Leader: Takuya Kamata ICR Team Leader: Takuya Kamata CHINA Hebei Urban Environment Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ...............................................1 2. Key Factors Affecting Implementation and Outcomes...............................................9 3. Assessment of Outcomes .......................................................................................... 13 4. Assessment of Risk to Development Outcome.........................................................19 5. Assessment of Bank and Borrower Performance...................................................... 19 6. Lessons Learned........................................................................................................ 21 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners...........23 Annex 1. Project Costs and Financing ..........................................................................24 Annex 2. Outputs by Component.................................................................................. 25 Annex 3. Economic and Financial Analysis .................................................................28 Annex 4. Bank Lending and Implementation Support/Supervision Processes.............36 Annex 5. Beneficiary Survey Results ........................................................................... 38 Annex 6. Stakeholder Workshop Report and Results...................................................39 Annex 7. Summary of Borrower’s ICR and/or Comments on Draft ICR ..................... 40 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders .......................50 Annex 9. List of Supporting Documents....................................................................... 51 MAP A. Basic Information HEBEI URBAN Country: China Project Name: ENVIRONMENT PROJECT Project ID: P045910 L/C/TF Number(s): IBRD-45690,TF-26661 ICR Date: 12/30/2008 ICR Type: Core ICR PEOPLES' REPUBLIC Lending Instrument: SIL Borrower: OF CHINA Original Total USD 150.0M Disbursed Amount: USD 149.0M Commitment: Environmental Category: B Implementing Agencies: Hebei Project Management Office Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 03/24/1999 Effectiveness: 01/31/2001 01/31/2001 Appraisal: 03/04/2000 Restructuring(s): 08/17/2007 Approval: 06/27/2000 Mid-term Review: 11/15/2004 Closing: 06/30/2007 06/30/2008 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Satisfactory Borrower Performance: Highly Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Highly Satisfactory Implementing Quality of Supervision: Satisfactory Highly Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Highly Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Sewerage 66 66 Sub-national government administration 1 1 Water supply 33 33 Theme Code (Primary/Secondary) Access to urban services and housing Primary Primary Environmental policies and institutions Primary Primary Pollution management and environmental health Primary Primary Water resource management Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jemal-ud-din Kassum Country Director: David R. Dollar Yukon Huang Sector Manager: Ede Jorge Ijjasz-Vasquez Keshav Varma Project Team Leader: Takuya Kamata Wiebe Moes ICR Team Leader: Takuya Kamata ICR Primary Author: Claudio Purificato F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) To develop a safe environment and to sustain the long-term economic growth of urban areas in Hebei Province. The project supports Hebei Province in: 1)implementing a long-term urban environmental services improvement program to recover from environmental degradation of its water and land resources, ii 2) providing an adequate supply of safe water to its growing urban population and economy, and 3) ensuring sustainability of delivery through institutional and financial reforms of the service utilities. Revised Project Development Objectives (as approved by original approving authority) (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : Reduction of pollution load from urban sources. e,g, waste water treatment rates e.g. waste water treatment (other indicators Value rates (other indicators exist - see quantitative or exist--see attachment) attchment) Qualitative) - Handan 29%; Tangshan Handan60%; 65%; Shijiazhuang 16% Tangshan 75%; Shijianzhuang 50%. Date achieved 01/01/2001 06/30/2008 Comments (incl. % achievement) Expansion of suppy of safe water to meet demand from domestic and industrial Indicator 2 : sectors. e.g. Handan e.g. Handan service are service are and population coverage Value population (other indicators exist-- quantitative or coverage - service see attachment) Qualitative) area 79.31 km2 - -service area 75.99 km2 population -population 818.2 ('000) 980,000 Date achieved 01/01/2001 06/30/2008 Comments (incl. % achievement) Indicator 3 : Improvement of financial viability of municipal service providers. Value e.g. increase in e.g. increase in quantitative or wastewater (domestic) wastewater Qualitative) tariffs (other indicators (domestic) tariffs iii exist--see attchment) (other indicators - Handan 0.22 exist - see - Tangshan 0.43 attachment) - - Shijiazhuang 0.3 Handan 0.45 - Tangshan0.9 - Shijiazhuang 0.8 Date achieved 01/01/2001 06/30/2008 Comments (incl. % achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : e.g. improvement in accounting and MIS/ KPI system. e.g.Total operating revenue - Total operating income - Net income Value before income tax - Tariff Targets are not (quantitative collection rate No available. or Qualitative) baseline values were available. For complete list of suggested indicators - See Annex 1 Date achieved 05/10/2000 06/30/2008 Comments (incl. % achievement) G. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 10/31/2000 Satisfactory Satisfactory 0.00 2 11/03/2000 Satisfactory Satisfactory 0.00 3 06/26/2001 Satisfactory Satisfactory 7.48 4 12/27/2001 Satisfactory Satisfactory 7.94 5 02/07/2002 Satisfactory Satisfactory 7.94 6 02/22/2002 Satisfactory Satisfactory 7.94 7 11/25/2002 Satisfactory Satisfactory 9.97 8 03/17/2003 Satisfactory Satisfactory 14.19 9 04/11/2003 Satisfactory Satisfactory 14.19 10 10/23/2003 Satisfactory Satisfactory 18.71 iv 11 04/02/2004 Satisfactory Satisfactory 30.64 12 12/23/2004 Satisfactory Satisfactory 44.51 13 06/15/2005 Satisfactory Satisfactory 65.79 14 02/16/2006 Satisfactory Satisfactory 91.51 15 06/28/2007 Satisfactory Satisfactory 116.22 16 06/05/2008 Satisfactory Satisfactory 127.99 H. Restructuring (if any) ISR Ratings at Amount Board Restructuring Disbursed at Restructuring Reason for Restructuring & Approved Restructuring Date(s) Key Changes Made PDO Change
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